From online shopping to paying utility bills, credit cards offer convenience and rewards that are hard to resist. However, with this convenience comes the risk of cyber threats. One crucial step to safeguard your financial information is regularly changing your credit card password.

According to the latest data from the Reserve Bank of India (RBI), payment frauds are on a steep rise. The value of domestic payment frauds surged by 70.64% to Rs 2,604 crore in the six-month period ending March 2024, up from Rs 1,526 crore in the same period the previous year.

Cybersecurity Threats

India has seen a significant increase in digital transactions, especially post-pandemic, as more people have shifted to online payments. This shift, while convenient, has also attracted cybercriminals who are constantly devising new ways to exploit vulnerabilities in online security systems. As cyber threats become more sophisticated, changing your credit card password regularly can act as a frontline defence against unauthorised access.

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Protecting Against Phishing Scams

Phishing scams are one of the most common methods used by cybercriminals to steal sensitive information. In these scams, fraudsters send fake emails or messages that appear to be from legitimate sources, such as your bank or a well-known e-commerce site. These messages often contain links to fake websites designed to steal your credit card details and passwords. Even if you unknowingly enter your password on such a site, changing it regularly can limit the damage by preventing ongoing access to your account.

Guarding Against Data Breaches

Data breaches have become a common occurrence, with large corporations and even financial institutions falling victim to hackers. In a data breach, cybercriminals can gain access to massive amounts of user information, including credit card details and passwords. If your credit card information is compromised in a breach, changing your password frequently can help protect your account from being misused. It’s important to remember that once your data is out in the open, it can be sold or traded on the dark web, making it crucial to stay proactive in safeguarding your information.

Reducing the Risk of Brute Force Attacks

Brute force attacks are another method cybercriminals use to gain access to your accounts. In these attacks, hackers use automated software to try different password combinations until they find the correct one. If you use the same password for a long time, it increases the chances of it being cracked through such an attack. By regularly updating your password, you can reduce the risk of hackers successfully gaining access to your account.

Adhil Shetty, CEO of Bankbazaar.com, says, “Many people tend to use simple, easy-to-remember passwords, which can be easily guessed by cybercriminals. When updating your password, make sure to use a combination of upper and lower case letters, numbers, and special characters. Avoid using easily guessable information such as your name, birthdate, or common phrases. A strong password is harder to crack and adds an additional layer of security to your credit cards security.”

Compliance with Institutions

Many banks and financial institutions in India recommend or even mandate periodic password changes as part of their security protocols. Following these guidelines not only helps protect your account but also ensures that you remain in compliance with the security policies of your credit card provider. This is particularly important as some institutions may limit their liability in case of fraud if the account holder fails to follow recommended security practices.

Regularly changing your credit card password is an effective way to protect your financial information. While it may seem inconvenient to change your password frequently, the potential benefits far outweigh the risks of not doing so. Stay vigilant and keep your financial information safe from scammers.